Revenue: As of FY2026 Q2, the actual value is USD 65.29 M.

EPS: As of FY2026 Q2, the actual value is USD 0.12, missing the estimate of USD 0.2367.

EBIT: As of FY2026 Q2, the actual value is USD 80.64 M.

Financial Highlights for the Quarter Ended June 30, 2026

Net Income and Earnings

GAAP net income for Franklin BSP Realty Trust, Inc. was $16.3 million for the three months ended June 30, 2026, and $28.6 million for the six months ended June 30, 2026. Net income applicable to common stock was $9.7 million for the three months ended June 30, 2026, compared to $16.5 million for the same period in 2025. For the six months ended June 30, 2026, net income applicable to common stock was $15.7 million, compared to $33.8 million for the same period in 2025. Distributable Earnings (non-GAAP) were $28.3 million for the three months and $41.8 million for the six months ended June 30, 2026. Distributable Earnings before realized losses (non-GAAP) were $30.2 million for the three months and $56.0 million for the six months ended June 30, 2026.

Book Value and Share Repurchases

Book value per diluted common share on a fully converted basis was $14.24 as of June 30, 2026, an increase of $0.06 from the prior quarter. Adjusted fully converted book value per share was $14.74, an increase of $0.16 from the prior quarter. Franklin BSP Realty Trust, Inc. repurchased 1,838,855 shares of common stock for an aggregate of $16.0 million at an average price of $8.70 per share during the quarter, which resulted in a $0.11 increase in book value per diluted common share on a fully converted basis.

Liquidity and Dividends

Total liquidity was $796.7 million, including $136.3 million in cash and cash equivalents, as of June 30, 2026. Franklin BSP Realty Trust, Inc. declared a second-quarter common stock cash dividend of $0.20.

Core Portfolio Metrics

The core portfolio’s principal balance totaled $4.3 billion across 172 loans, with an average loan size of $25.3 million. Approximately 80% of these loans were collateralized by multifamily properties. New loan commitments of $166.7 million were closed at a weighted average spread of 238 basis points. Franklin BSP Realty Trust, Inc. funded $248.4 million of principal balance on new and existing loans and received loan repayments of $457.7 million. The average portfolio risk rating improved to 2.4 from 2.5 in the prior quarter. At quarter-end, 12 loans were on the watch list, with seven risk-rated a four and five risk-rated a five.

Agency Business Segment

The servicing portfolio grew by $1.7 billion to $59.8 billion. Franklin BSP Realty Trust, Inc. originated $398.8 million of new loan commitments under programs with Fannie Mae, Freddie Mac, and HUD. Mortgage Servicing Rights (MSRs) were valued at $205.5 million.

Conduit Segment

Franklin BSP Realty Trust, Inc. originated $78.3 million of fixed-rate conduit loans and sold $249.5 million of conduit loans for a gain of $6.0 million, gross of related derivatives.

Real Estate Owned and Equity Method Investments

Franklin BSP Realty Trust, Inc. held six foreclosure real estate owned (REO) positions totaling $198.7 million, one investment REO position of $115.2 million, and five equity method investment positions of $89.2 million. The REO portfolio included six foreclosure positions totaling $199 million and one investment real estate owned position of $115 million.

Allowance for Credit Losses

A net provision for credit losses of $7.2 million was recognized during the quarter. This included a $5.2 million provision for the core portfolio and a $2.0 million provision for the Agency Business. For the six months ended June 30, 2026, the provision for credit losses was - $18.6 million. Total Allowance for Credit Losses was $54.7 million, representing 1.3% of the Total UPB, with $36.9 million for General CECL Allowance and $17.8 million for Specific CECL Allowance.

Other Financial Metrics

Interest income was $97.2 million for the three months ended June 30, 2026, compared to $111.2 million for the same period in 2025. Net interest income for the quarter was $29.9 million, compared to $41.0 million for the same period in 2025. Total income was $65.3 million for the three months ended June 30, 2026, compared to $49.3 million for the same period in 2025. Total expenses were $53.1 million for the three months ended June 30, 2026, compared to $29.6 million for the same period in 2025. Operating expenses were - $15.0 million. Realized gain/(loss) on debt extinguishment was - $0.9 million for the three and six months ended June 30, 2026. Other income/(loss) was $10.3 million.

Capitalization and Balance Sheet

Net debt to equity was 2.6x, and recourse net debt to equity was 0.7x. As of June 30, 2026, total assets were $6,383.8 million, including a total core portfolio of $4,275.1 million, loans held-for-sale of $251.8 million, mortgage servicing rights of $205.5 million, and real estate owned of $317.5 million. Total debt was $4,165.5 million, comprising $2,943.6 million in collateralized loan obligations, $802.4 million in repurchase agreements and revolving credit facilities, and $185.9 million in unsecured debt. Total equity was $1,549.2 million. The average cost of debt, including financing costs, increased to 6.2% in Q2 2026 from 6.0% in Q1 2026.

Outlook

The Board of Directors reauthorized Franklin BSP Realty Trust, Inc.’s share repurchase program on July 28, 2026. This reauthorization makes $50.0 million available for share repurchases through December 31, 2026. The report includes forward-looking statements but explicitly states no obligation to update or revise them, noting that actual results may differ materially due to various factors.